Pernod Moves Forward with Absolut
Pernod has been given the okay to move forward with its $9 billion acquisition of Vin & Sprit by the European Union and Federal Trade Commission. But first, the FTC has required Pernod to end its distribution agreement with SPI (owners of Stoli) in the next six months before the V&S deal is completed. Pernod had already planned to end its agreement with SPI, so it’s really nothing new.
The company also signed a consent order that imposes firewalls to prevent Pernod from using “competitively sensitive information” about Beam Global. The FTC was concerned that Pernod could have an unfair advantage regarding Beam Global’s Cognac, domestic cordials, coffee liqueur, and popular gin once it assume V&S’s role in Future Brands (the joint-venture between Beam and V&S).
"The proposed acquisition would have...raised concerns about the exchange of information in four other distilled spirits markets," said Jeffrey Schmidt, Director of the FTC's Bureau of Competition. "The consent order announced today effectively addresses those concerns and ensures that the Absolut and Stolichnaya brands, and the Pernod and Beam Global brands, will continue to compete aggressively."
The European Union also approved the acquisition on the grounds that Pernod divests Dry Anis in Finland, Serkova vodka in Greece, Lubuski gin in Poland and Star Gin, Red Port and Groenstedts cognac in Sweden. In addition, Pernod agreed to discontinue the distribution of Royal Canadian in Sweden, and will soon end its distribution agreement with the SPI Group concerning Stolichnaya and Moskovskaya in the EU.
CONSTELLATION CHIEF DRAWS $6.2M IN 2008
Constellation ceo Robert Sands drew compensation valued at $6.2 million in the company’s 2008 fiscal year according to its proxy statement, reports the Associated Press.
For the year ended Feb. 29, Robert Sands drew a salary of $978,070, a bonus of $606,403, $835,663 in performance incentives plus perks worth $205,549, most of which was use of company aircraft. He also received stock and options valued at $3.59 million. In fiscal 2007, he received $1.5 million in compensation.
Richard Sands, 56, who switched to chairman after 14 years at the helm, had compensation valued at $4.1 million in fiscal 2007. In the latest fiscal year, he received nearly $7.3 million, including stock and options with an estimated value of $4.2 million.
NEW BABY BOOM IN 2007
Baby Boomers move over. The National Center for Health Statistics just reported that a record 4,315,000 babies were born in the United States in 2007, according to ABC News. The prior record was in 1957, which was the height of the baby boom. Apparently, this is the first year the baby boom has been beaten.
However, the difference lies in the fact that the overall population has nearly doubled since the 1950’s. Back then, the average woman was having close to four children. Today, she’s having close to two. Another difference is that women are having babies later in life. Among women in their 40s, the birth rate has doubled since the 1990s and quadrupled since the 1980s.
The biggest factor contributing to the current baby boom is immigration. The birth rate is rising fastest among Hispanic immigrants in particular, far outpacing the 2.1 average births per woman.
"These are going to be future wage-earners and they're going to be supporting the Social Security system for some decades to come," said Robert Engelman, vice president for programs at the Worldwatch Institute.
He remarked that it will also take a toll on gas prices, food prices and environmental issues in the future.
SAFEWAY SHARES DROP 11% ON ECONOMIC WOES
Safeway says same store sales have dropped as consumers switch to store brands versus name brands. The grocery chain lowered its fiscal 2008 identical-store sales growth forecast to 1% to 2%, excluding fuel sales, from 2% to 2.3%, reports WSJ’s David Kesmodel. As a result, shares fell 11%, or $3.23, to $26.78 Thursday.
"I don't think any of us feel the economy is going to improve anytime soon, at least not consumer confidence," said Safeway chairman and ceo Steve Burd.
He said that although the company has been encouraging the shift to private label brands, “we're not happy with our [identical-store] sales and clearly have plans to improve our momentum as we move through the balance of” the year.
Safeway’s second quarter same-store sales rose 1%, while identical-store sales increased 0.9%. Excluding fuel sales, sales were down -0.2% and -0.3%, respectively. Safeway says it has been slashing costs by cutting jobs, reducing advertising spending and becoming more efficient in moving goods onto store shelves.
WSD BRIEFS:
NORTH CAROLINA REVIEWS ABC SYSTEM. Lawmakers in North Carolina (a control state) are reviewing the Alcoholic Beverage Control system, which could lead to possible changes although it is unlikely it will result in a privatization of liquor stores. Currently, consumers must buy liquor from ABC package stores run by local ABC Boards across the state. The Program Evaluation Division is expected to have a final report for lawmakers by the end of the year, including any recommendations for ways to improve the state's Alcoholic Beverage Control system, according to local reports.
GOV. SCHWARZENEGGER SIGNED A BILL ALLOWING WINES-BY-THE-GLASS OR BOTTLE to be consumed at winery tasting rooms and picnic areas.
TO SEE THE WINNERS OF THE SAN FRANCISCO WINE COMPETITION, click here.
Until Monday, Megan
“I like life. It's something to do.”
Ronnie Shakes
--------- Sell Day Calendar ----------
Today’s Sell Day: 14
Sell days this month: 23
Sell days this month last year: 22
This month ends on a: Thur
This month last year ended on a: Tues.
YTD sell days Over/Under: +0
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
The company also signed a consent order that imposes firewalls to prevent Pernod from using “competitively sensitive information” about Beam Global. The FTC was concerned that Pernod could have an unfair advantage regarding Beam Global’s Cognac, domestic cordials, coffee liqueur, and popular gin once it assume V&S’s role in Future Brands (the joint-venture between Beam and V&S).
"The proposed acquisition would have...raised concerns about the exchange of information in four other distilled spirits markets," said Jeffrey Schmidt, Director of the FTC's Bureau of Competition. "The consent order announced today effectively addresses those concerns and ensures that the Absolut and Stolichnaya brands, and the Pernod and Beam Global brands, will continue to compete aggressively."
The European Union also approved the acquisition on the grounds that Pernod divests Dry Anis in Finland, Serkova vodka in Greece, Lubuski gin in Poland and Star Gin, Red Port and Groenstedts cognac in Sweden. In addition, Pernod agreed to discontinue the distribution of Royal Canadian in Sweden, and will soon end its distribution agreement with the SPI Group concerning Stolichnaya and Moskovskaya in the EU.
CONSTELLATION CHIEF DRAWS $6.2M IN 2008
Constellation ceo Robert Sands drew compensation valued at $6.2 million in the company’s 2008 fiscal year according to its proxy statement, reports the Associated Press.
For the year ended Feb. 29, Robert Sands drew a salary of $978,070, a bonus of $606,403, $835,663 in performance incentives plus perks worth $205,549, most of which was use of company aircraft. He also received stock and options valued at $3.59 million. In fiscal 2007, he received $1.5 million in compensation.
Richard Sands, 56, who switched to chairman after 14 years at the helm, had compensation valued at $4.1 million in fiscal 2007. In the latest fiscal year, he received nearly $7.3 million, including stock and options with an estimated value of $4.2 million.
NEW BABY BOOM IN 2007
Baby Boomers move over. The National Center for Health Statistics just reported that a record 4,315,000 babies were born in the United States in 2007, according to ABC News. The prior record was in 1957, which was the height of the baby boom. Apparently, this is the first year the baby boom has been beaten.
However, the difference lies in the fact that the overall population has nearly doubled since the 1950’s. Back then, the average woman was having close to four children. Today, she’s having close to two. Another difference is that women are having babies later in life. Among women in their 40s, the birth rate has doubled since the 1990s and quadrupled since the 1980s.
The biggest factor contributing to the current baby boom is immigration. The birth rate is rising fastest among Hispanic immigrants in particular, far outpacing the 2.1 average births per woman.
"These are going to be future wage-earners and they're going to be supporting the Social Security system for some decades to come," said Robert Engelman, vice president for programs at the Worldwatch Institute.
He remarked that it will also take a toll on gas prices, food prices and environmental issues in the future.
SAFEWAY SHARES DROP 11% ON ECONOMIC WOES
Safeway says same store sales have dropped as consumers switch to store brands versus name brands. The grocery chain lowered its fiscal 2008 identical-store sales growth forecast to 1% to 2%, excluding fuel sales, from 2% to 2.3%, reports WSJ’s David Kesmodel. As a result, shares fell 11%, or $3.23, to $26.78 Thursday.
"I don't think any of us feel the economy is going to improve anytime soon, at least not consumer confidence," said Safeway chairman and ceo Steve Burd.
He said that although the company has been encouraging the shift to private label brands, “we're not happy with our [identical-store] sales and clearly have plans to improve our momentum as we move through the balance of” the year.
Safeway’s second quarter same-store sales rose 1%, while identical-store sales increased 0.9%. Excluding fuel sales, sales were down -0.2% and -0.3%, respectively. Safeway says it has been slashing costs by cutting jobs, reducing advertising spending and becoming more efficient in moving goods onto store shelves.
WSD BRIEFS:
NORTH CAROLINA REVIEWS ABC SYSTEM. Lawmakers in North Carolina (a control state) are reviewing the Alcoholic Beverage Control system, which could lead to possible changes although it is unlikely it will result in a privatization of liquor stores. Currently, consumers must buy liquor from ABC package stores run by local ABC Boards across the state. The Program Evaluation Division is expected to have a final report for lawmakers by the end of the year, including any recommendations for ways to improve the state's Alcoholic Beverage Control system, according to local reports.
GOV. SCHWARZENEGGER SIGNED A BILL ALLOWING WINES-BY-THE-GLASS OR BOTTLE to be consumed at winery tasting rooms and picnic areas.
TO SEE THE WINNERS OF THE SAN FRANCISCO WINE COMPETITION, click here.
Until Monday, Megan
“I like life. It's something to do.”
Ronnie Shakes
--------- Sell Day Calendar ----------
Today’s Sell Day: 14
Sell days this month: 23
Sell days this month last year: 22
This month ends on a: Thur
This month last year ended on a: Tues.
YTD sell days Over/Under: +0
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
posted at 10:50 AM
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